1.An example of a consumer (versus a B2B) transaction is:
A) the owner of a car dealership buys a boat to indulge his fishing hobby
B) the manager of Office Depot purchases computer paper from her store for her son’s school use
C) Both A and B are B2B transactions, not consumer transactions
D) Both A and B are consumer transactions
2. "An organized system of institutions which perform the functions required to link producers with
end consumers" is the AMA’s definition of:
A) a supply chain
B) a wholesaler
C) an intermediary
D) a distribution channel
3.This step in the Marketing Process requires building in a system for measurement:
A) Setting marketing objectives
B) Developing marketing strategies
C) Implementing marketing strategies
D) Evaluating whether objectives have been met
4.Students new to marketing concepts often make the mistake of assuming that:
A) there are often critical differences between customers that require marketing strategy to be
adapted
B) the best market to target is everyone so that certain potential customers will not be overlooked
C) it is important to identify that which differentiates one product from another
D) all of the above are mistakes
5.Offering customers something that competitors do not offer, find hard to copy, and is important to
customers is a way for a company to:
A) be ethical
B) be a niche marketer
C) be sure to fail in today’s marketplace
D) to achieve a sustainable competitive advantage
6.Which of the following statements about supply chain management is TRUE?
A) The area of supply chain management has assumed increased importance in most large
companies.
B) Supply chain management is often referred to as logistics.
C) A marketing channel is a subset of a supply chain
D) All of the above are true statements.
7.A philosophy that many companies claim to practice but few actually achieve is:
A) a Societal Marketing Orientation
B) a Marketing Orientation
C) a Sales Orientation
D) a Production Orientation
8.Which one of the following is measured in terms of its width and depth?
A) product line
B) product category
C) product class
D) product mix
9.When the beer maker, Samuel Adams, advertises that it uses more hops than any other beer
maker in the production process, it is positioning itself on the basis of:
A) price
B) product class
C) attributes or benefits
10.What is the name of the process that a marketing organization engages in when it attempts to
establish a unique place in the minds of its target market, relative to competitors?
A) market segmentation
B) target marketing
C) positioning
D) marketing research
11.This step in the segmentation process is critical to an organization because it influences how
resources will be allocated and how the marketing mix will be created:
A) Identification of segmentation bases
B) Profile and analysis of segments
C) Selection of target market(s)
D) Development of marketing mix for each identified target market
12.Developing a unique marketing mix can only be justified in the segmentation process when:
A) the target market will respond differently to the unique mix
B) there are no identifiable differences in the total market
C) when there are unlimited resources for an organization to spend
D) a unique marketing mix can never be justified since it is too expensive to adapt the marketing mix
13.to appeal differentially to different target markets
A product’s selling price should be driven by:
A) How much it costs the company to make it
B) Customers’ perceived value
C) How much profit the company wants to earn
D) Demand
14.The insurance company, Geico, uses the image of a well-spoken gecko to represent the company
it much of its advertising. This effort is an attempt to address the _____________ of the service:
A) perishability
B) intangibility
C) heterogeneity
D) inseparability
15.This step in the Marketing Process involves identifying the target market and developing the
marketing mix:
A) Setting marketing objectives
B) Developing marketing strategies
C) Implementing marketing strategies
D) Evaluating whether objectives have been met
16.When Kia introduces a new car model at a price point that is lower than its direct competitors and
remains low for the life of the model, it is using:
A) price skimming
B) penetration pricing
C) status quo pricing
D) promotional pricing
17.UPS is conducting a study to try to understand why certain customers have reduced or eliminated
their monthly transactions with the company. To understand why these customers are leaving, UPS
is taking the first step of analyzing internal customer transaction data to determine whether there are
certain customer types that have reduced their UPS shipping more than others. UPS is using:
A) secondary research
B) descriptive research
C) exploratory research
D) causal research
18.Which one of the following promotional activities is incorrectly often referred to as "free
advertising":
A) publicity
B) personal selling
C) sales promotion
D) public relations
19.Which one of the following is NOT used effectively as a base for segmenting consumer markets?
A) lifestyles
B) customer size
C) geographic location
D) behaviors
20.The environment in which an organization plans its marketing strategy is BEST characterized as:
A) static, that is it changes very little
B) constantly changing
C) only important to consider after a target market is selected
D) with competitors in the center as the key planning variable
21.A condominium developer uses this type of targeting strategy when it decides to focus only on
very upscale purchasers who can afford to spend a considerable amount of money on a condo and
want all of the most desirable features.
A) undifferentiated
B) differentiated
C) niche
D) diversification
22.The producer an expensive brand of designer jeans is most likely to choose this type of channel
strategy:
A) exclusive distribution
B) inclusive distribution
C) selective distribution
D) intensive distribution
23.In the Product Life Cycle model, a peak in industry sales indicates:
A) movement out of the introductory phase
B) the end of the growth phase
C) moving from early to late maturity
D) decline
24.The local gas station on the corner probably uses this pricing objective:
A) status quo
B) sales maximization
C) market share maximization
D) profit maximization
25.In the Information Search stage of the Consumer Decision Process a consumer will:
A) always do two things — search internal mental files and engage in an external search of possible
products
B) select a consideration set
C) often seek external information for risky purchases or for products they have never before
purchased
D) likely engage in cognitive dissonance
26.A brand is best defined as:
A) the spoken part of the brand
B) a promise or an organization’s commitment to its target market
C) the symbol or design part of the brand
D) the name of a product that is owned or controlled by the manufacturer
27.Which one of the following statements about pricing strategy is FALSE:
A) pricing objectives must be consistent with objectives for the other marketing mix variables
B) a company can make a profit using either a profit maximization or a sales maximization strategy,
depending on the situation
C) smart marketers use price discounts as a sustainable competitive advantage
D) pricing decisions have many legal implications
28.Which one of the following members of the distribution channel would acquire ownership of a
product, add value and then resell the product to another distribution channel member?
A) merchant wholesaler
B) retailer
C) agent
D) all of the above
29.Marketers frequently use graphs to represent a product’s position in the marketplace relative to
competitors, referred to as
A) perceptual maps
B) product life cycles
C) diffusion of innovation
D) supply/demand curves
30.When Honda began to manufacture lawn mowers it was pursuing a ____________________
strategy.
A) Market Penetration
B) Market Development
C) Product Development
D) Diversification
31.To be successful in the present highly competitive environment, an organization should adopt this
type of orientation:
A) production orientation
B) market orientation
C) sales orientation
D) profit orientation
32.Mc Donald’s and Wendy’s are generally considered to be this type of channel intermediary:
A) general merchandise retailer
B) full service merchant wholesaler
C) franchise
D) specialty retailer
33.Which one of the following criteria is NOT necessary for a customer to be considered part of the
total market?
A) ability
B) willingness
C) authority
D) all three are necessary criteria
34.When a product’s demand is characterized as inelastic, it implies:
A) customers are not very sensitive to price fluctuations
B) there are many substitutes in the market
C) when price rises, customer will buy less of the product
D) the product is sold only in business markets
35.Jane is getting married next year. She has spent days going from bridal salon to bridal salon to
select her dress, but has still not found the perfect one. Jill is getting married in 3 months. She
ordered a wedding gown from J. Crew’s online store after checking a few of her favorite online
retailers. The type of consumer decision process that Jane is using is best categorized as
_________________, while Jill’s decision is better described as _____________________ :
A) problem recognition; routine
B) limited problem solving; routine response behavior
C) extended problem solving; limited problem solving
D) new task; modified re-buy
36.Ken’s Property Management is a small, local start-up company that offers home owners full
service property management that includes lawn maintenance, irrigation system maintenance, and
home repairs and maintenance. Ken plans to target older home owners who no longer want the
responsibility of taking care of the day-to-day home ownerships tasks. Ken does not currently have a
website and has decided to hire an external company to create one for his new business. Ken’s
daughter, Cindy, does not work for the business but has recently graduated from college and know a
lot about web design. Ken has discussed possible web site designers with Cindy and asked for her
input. In this situation, Cindy is playing the role of _________________ in the buying center for
Ken’s Property Management:
A) influencer
B) purchaser
C) user
D) none of the above
37.An organization’s internal environment represents a strong influence on marketing strategy and
can be a(n) ______________________ for the marketing organization.
A) opportunity or threat
B) strength or weakness
C) strength and opportunity
D) all of the above
38.A reseller is a business buyer that:
A) manufactures goods or provides services
B) is typically a government buyer
C) includes such organizations as hospitals, schools and correctional facilities
D) adds value to products by providing transportation, storage, financing and other services in
addition to a mark-up
39.A condominium developer uses this type of targeting strategy when it decides to focus only on
very upscale purchasers who can afford to spend a considerable amount of money on a condo and
want all of the most desirable features.
A) undifferentiated
B) differentiated
C) niche
D) diversification
40.Indirect channels:
A) are more common in B2B markets
B) are more common for services
C) are comprised of fewer intermediaries
D) none of the above
41.In manufacturing garage door openers, Genie purchases preassembled motors from an
independent supplier. These motors are consider to be:
A) component parts
B) raw materials
C) MRO supplies
D) process materials
42.The environment in which an organization plans its marketing strategy is BEST characterized as:
A) static, that is it changes very little
B) constantly changing
C) only important to consider after a target market is selected
D) with competitors in the center as the key planning variable
43.Of all the marketing mix variables (i.e., the 4 P’s), which one does the marketing manager have
the least control over:
A) Product
B) Promotion
C) Place
D) Price
44.Customers adapt a new product more readily when:
A) It is a high tech, complex product that they must learn to use
B) It is so new that it is not compatible with current products and usage
C) The relative advantage can be observed and can be understood
D) All new products are readily adopted by customers
45.Jane is getting married next year. She has spent days going from bridal salon to bridal salon to
select her dress, but has still not found the perfect one. Jill is getting married in 3 months. She
ordered a wedding gown from J. Crew’s online store after checking a few of her favorite online
retailers. The type of consumer decision process that Jane is using is best categorized as
_________________, while Jill’s decision is better described as _____________________ :
A) problem recognition; routine
B) limited problem solving; routine response behavior
C) extended problem solving; limited problem solving
D) new task; modified re-buy
46.The local gas station on the corner probably uses this pricing objective:
A) status quo
B) sales maximization
C) market share maximization
D) profit maximization
47.Which one of the following statements about consumers is FALSE:
A) unlike business buyers, consumers purchase products for their own personal use
B) unlike business buyers, consumers may purchase products for their families’ use
C) to be used in the production of another product for sale
D) both consumers and business buyers may correctly be referred to as customers
48.Which one of the following statements about a marketer’s controllable environment is TRUE:
A) controllable variables are considered to me macro-environmental variables
B) decisions about one of the 4 P’s must be made independently of the other P’s
C) strategy decisions about one of the controllable variables influences strategy decisions about the
others
D) all of the above are TRUE
49.When Samsung introduced its newest HD TV, it gave incentives to retailers such as Best Buy to
carry its brand but also advertised on TV directly to end consumers. The promotion directed to
consumers can best be described as:
A) a pull promotional strategy
B) personal selling
C) a B2B promotion
D) a push promotional strategy
50.When Wal-Mart opened stores in Mexico, it was pursuing a _________________________
strategy.
A) Market Penetration
B) Market Development
C) Product Development
D) Diversification
51.Total number of products that a single company markets is referred to as its:
A) product mix
B) product line
C) product category
D) product class
52.Identification of (a) __________________ is critical since an organization’s marketing mix is built
around it:
A) target market
B) product strategy
C) promotion strategy
D) competition
53.Which one of the following intermediaries is not found in a B2B distribution channel:
A) agent
B) producer
C) retailer
D) distributor
54.Michelle adores a perfume that is made just for her by a small perfumery in her home town. She
will not purchase any other fragrance from any other retailer and plans ahead to order her uniquely
produced fragrance because it is expensive for her budget. To Michelle, perfume is a:
A) a specialty product
B) a shopping product
C) a convenience product
D) an impulse item
55.Which one of the following buyers is NOT typically considered a business buyer:
A) the city of New York
B) Wal-mart
C) the University of
D) all of the above are considered to be business buyers
56.An organization’s external environment includes all BUT which of the following?
A) political forces
B) natural forces
C) pricing forces
D) technological forces
57.Which one of the following targeting strategies is most likely to be effective in today’s competitive
environment?
A) undifferentiated
B) differentiated
C) concentrated
D) both B and C may be effective
58.Which one of the following statements about B2B purchases is FALSE:
A) B2B purchases are usually more complex than consumer purchases
B) versus consumer purchases, B2B purchases are more likely to be made by professional buyers
C) B2B transactions often have to be approved by committees and management
D) unlike consumer purchases that can be influenced by various family members, a single
professional buyer is typically responsible for making the decision on a B2B purchase
59.For marketing communications to be effective, a marketing organization must use signs, symbols,
words and colors to correctly _____________ a message so that the audience can
______________ the message in a way that they will understand it properly.
A) send; receive
B) message; channel
C) encode; decode
D) noise; feedback
60.Which one of the following is NOT a step in the segmentation process?
A) Selection of industry/product category/market
B) Identification of segmentation bases
C) Profile and analysis of segments
D) Determine the correct research methodology
61.In this stage of the Consumer Decision Process, the buyer may experience cognitive dissonance:
A) post-purchase evaluation
B) purchase decision
C) alternative evaluation
D) problem recognition
